As we see a constant growth in the economy, an important factor, which has come to light, is the rising number of credit card users. This is evident from the fact that an average guy nowadays rarely makes cash payment for his purchases, especially for large ones.
With the rising number of credit card users, we also see a rise in the number of credit card provider companies. In fact, if you are interested in using a credit card, then you have a number of options available in the market.
Credit cards have a number of advantages. Apart from the cashless facility, that they provide, they also provide you with the facility of buy today and pay later. This makes it much easier, especially in case, where there is a delay in collection of salary, or in case of unavailability of cash reserves.
However, before you go for a credit card, you must always remember, to consider the following aspects:
1. The first consideration in case of choosing a credit card is the minimum monthly payment. This is perhaps the most important factor, while opting for a credit card option. Therefore, while you search through your options, it is better, to look for a credit card, which offers you the best deals available in the market.
2. Another important consideration in this regard is the APR or the Annual Percentage Rate. The lower the Annual Percentage Rate, the better it would be for you. It would be therefore in your benefit to search for a credit card option, which offers you the lowest APR.
3. Another important aspect is the interest free period. Round about every credit card company, nowadays offers a considerable interest free period, which makes it easier for the credit card holder in making payment. Some offer a relatively high interest free period, whereas others are relatively low. While choosing for a credit card, make sure that you get the best in this regard.
4. You should also look out for any special features or schemes, which might be available with the credit card. If something is available free of cost, it would be beneficial for you.
5. Apart from the above features, an important aspect, which you should take care, is that of your need. If your needs can be satisfied by a Gold card, then you do not have any reason to go for a Platinum card.
People go for credit cards for different reasons. Some opt for it; to support their cash flow, whereas, others may opt for a credit card, simply to avail the credit facility which they offer.
Sunday, November 13, 2011
Gold and Platinum Credit Cards
With the rise in the standard of living; a noticeable aspect, which has come to light in recent years, is the rising number of credit card users. This gave rise to the number of credit card providers as well. With the changing times and rising level of competition, credit card companies, were forced, not only to lower their charges, but to take several important steps, one of which was fragmentation of their clients. This paved way for gold and platinum card.
Gold and platinum card holders enjoy a number of benefits which normal card holders do not enjoy. As times changed, the differences between these cards got blurred and today there remains little difference between them.
However there is still some difference left and it can not be ignored. Typically gold and platinum credit cards cater to clients, belonging to different income category. Both gold and platinum cards have their respective advantages as well as disadvantages; and it depends on your own income level as well as your own needs, which card you should go for.
Gold Cards
Gold cards come with their own baggage of advantages and disadvantages. Typically a gold card aims at catering to an average guy, with moderate means. With lower fee structure, as well as lower minimum repayment limits Gold cards seem to be the ideal option for a fairly large number of people and this explains its popularity. In fact while you are standing in a queue for making payments for your shopping in a departmental store, the man standing right in front of you is twice as likely to make his payment by a gold card, than a platinum card. In case you miss the last date for making repayment, then in all probability gold card is going to charge you a fairly lower amount of penalty fees. Also, in most cases, the balance transfer fees for a gold card, is fairly lower than that of a platinum card.
Platinum Cards
Platinum cards are aimed at the higher strata of the society. People, who fall in higher income group, usually go for a platinum card, mainly due to the advantages it offers to them. A platinum card has a higher credit limit and though it has a higher membership fees, it solves the basic purpose of credit cards in a better way, i.e. higher credit. Another important advantage is related to cash withdrawals, which is usually higher in case of platinum cards.
Both gold and platinum cards have their own advantages. May be that is the reason why a majority of people go for both types, instead of one.
Gold and platinum card holders enjoy a number of benefits which normal card holders do not enjoy. As times changed, the differences between these cards got blurred and today there remains little difference between them.
However there is still some difference left and it can not be ignored. Typically gold and platinum credit cards cater to clients, belonging to different income category. Both gold and platinum cards have their respective advantages as well as disadvantages; and it depends on your own income level as well as your own needs, which card you should go for.
Gold Cards
Gold cards come with their own baggage of advantages and disadvantages. Typically a gold card aims at catering to an average guy, with moderate means. With lower fee structure, as well as lower minimum repayment limits Gold cards seem to be the ideal option for a fairly large number of people and this explains its popularity. In fact while you are standing in a queue for making payments for your shopping in a departmental store, the man standing right in front of you is twice as likely to make his payment by a gold card, than a platinum card. In case you miss the last date for making repayment, then in all probability gold card is going to charge you a fairly lower amount of penalty fees. Also, in most cases, the balance transfer fees for a gold card, is fairly lower than that of a platinum card.
Platinum Cards
Platinum cards are aimed at the higher strata of the society. People, who fall in higher income group, usually go for a platinum card, mainly due to the advantages it offers to them. A platinum card has a higher credit limit and though it has a higher membership fees, it solves the basic purpose of credit cards in a better way, i.e. higher credit. Another important advantage is related to cash withdrawals, which is usually higher in case of platinum cards.
Both gold and platinum cards have their own advantages. May be that is the reason why a majority of people go for both types, instead of one.
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